Contents of section 6 (Fees and costs)
8 Contents of section 6 (Fees and costs)
For each MySuper product or investment option within a superannuation product that is presented in section 5 in detail in accordance with subclause 7(3), section 6 of the Product Disclosure Statement must state:
the cost of acquiring the MySuper product or investment option; and
the fees and costs that are charged in relation to the MySuper product or investment option.
The statement will be made using the template set out in subclause (3).
Before setting out any other substantive material, section 6 must:
set out the Consumer Advisory Warning in clause 221 of Schedule 10; and
give a concise example in the form set out in the Consumer Advisory Warning in clause 221 of Schedule 10.
Section 6 must set out the fees and costs for each MySuper product or other investment option that is presented in section 5 in detail in accordance with subclause 7(3), using the following templates:
[Name of superannuation product] | ||
Type of fee | Amount | How and when paid |
Investment fee¹ |
|
|
Administration fee¹ |
|
|
Buy‑sell spread |
|
|
Switching fee |
|
|
Advice fees relating to all members investing in a particular MySuper product or investment option |
|
|
Other fees and costs² |
|
|
Indirect cost ratio¹ |
|
|
1. If your account balance for a product offered by the superannuation entity is less than $6,000 at the end of the entity’s income year, the total combined amount of administration fees, investment fees and indirect costs charged to you is capped at 3% of the account balance. Any amount charged in excess of that cap must be refunded.
2. [If there are other fees and costs, such as activity fees, advice fees for personal advice or insurance fees, include a cross‑reference to the “Additional Explanation of Fees and Costs”.]
The template is to be completed in accordance with Division 3 of Schedule 10 (including definitions applicable to that Division), except that:
clauses 203, 205, 206 and 207 and subclause 208(2) do not apply; and
the reference in clause 204 to clause 205 and clause 206 does not apply; and
the example in subclause 208(1) is to be treated as stating:
“(for example, by using an asterisk with a footnote stating ‘The amount of this fee can be negotiated’)”.
Section 6 must set out the information about fee changes set out in paragraph 209(k) of Schedule 10.
Section 6 must:
state that the information in the template can be used to compare costs between different superannuation products; and
state concisely, and in general terms, that fees and costs can be paid directly from the person’s account or deducted from investment returns.
Section 6 must:
apply, adopt or incorporate the definitions in relation to fees mentioned in section 29V or subsection 99BA(2) of the SIS Act; and
include the address of a link to the definitions maintained on a website.
Section 6 must give a worked example for each MySuper product or investment option described in section 5.
The example given must be in accordance with Divisions 5 and 6 of Schedule 10 (including the definitions applicable to those Divisions).
Section 6:
must refer to the calculator provided by ASIC on its FIDO website or a similar website operated by or on behalf of ASIC; and
may also refer to the calculator (if any) provided by the superannuation trustee on its website; and
must state that each calculator referred to can be used to calculate the effect of fees and costs on account balances.
If additional fees may be payable to a financial advisor, section 6 must:
state, in the form of a warning, that additional fees may be paid to a financial advisor if a financial advisor is consulted; and
refer to the Statement of Advice in which details of the fees are set out; and
if applicable:
state that fees may be paid to the employer entity’s financial adviser; and
explain how the fees are determined.
The superannuation trustee:
must provide the fees and costs of each of the MySuper products and investment options in accordance with Schedule 10, and may do so by applying, adopting or incorporating a matter in writing; and
may provide more detailed information about fees and costs by applying, adopting or incorporating a matter in writing.
This Act’s bill:Explanatory statement
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